Doing Business In China: The Basics Of The Basics

Australia's Age Newspaper recently did a story, entitled, More than game theory: etiquette counts in China, regarding a nine team "Masters of their Game" competition to devise a business solution for a fictional client wanting to do business in China.  More importantly, the article provides this decent hodgepodge of basic tips for doing business in China:

  • Punctuality is important
  • The highest-ranking person in a meeting sits at the head of the table
  • Do not write on someone else's business card
  • Choosing a trustworthy partner is vital
  • China is not a monolithic market; it is many geographically and economically separate sub-markets
  • Mandarin is the legal language and it overrules any English definition
  • Any business plan must allow for long delays in setting up and for unsophisticated distribution systems.

Funny thing about this list is that if you reverse the words "Mandarin" and "English" above and delete the "un" from "unsophisticated," it would make a good primer for doing business in the United States (and probably Austrialia) as well.   

Comments (2)

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David Carnes - October 22, 2006 10:48 AM

"Funny thing about this list is that if you reverse the words "Mandarin" and "English" above and delete the "un" from "unsophisticated," it would make a good primer for doing business in the United States (and probably Austrialia) as well."

Right on.

There is quite a bit of literature in the west on "Chinese Business Etiquette" and "How Not to Offend the Chinese". It should be remembered that the Chinese fully realize that we are not familiar with their customs, and that they are generally understanding and not so easily offended. In fact, many of them are busy studying western etiquette and how not to offend westerners.

Common decency is fairly universal, and that will keep you safe 90% of the time (although the more you know about Chinese etiquette the better). The only thing that really seems to rankle them is an inconsiderate or arrogant attitude.

China Law Blog - October 22, 2006 1:35 PM

David --

Thanks for checking in. I'll take your 90 percent and raise you 9.9. I completely agree with you that so long as one shows a sincere interest in China and avoids acting arrogantly or condescendingly, one ought to do just fine. I find that if one does all of these things and makes a real effort to learn at least something of the country (including its history and language) one usually does fine in just about every country other than France.

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